A survey conducted by FA Insight Advisory indicates that firms with young advisors perform better and earn 44% more income. While the survey was conducted in USA, this is true for India too, say leading IFAs.
Let us understand why hiring young talent in your team can help you grow your business.
You can mould them
Hiring youngsters will help you train them and mould them in line with the needs of your firm and your clients. “Young people are more open and adapt themselves faster. We find that hiring fresh talent helps us to guide them according to our company strategies and policies,” says Malhar Majumdar of Fineadvice.
Speaking at the recent Cafemutual Confluence 2015 event, Ramesh Bhat of Aniram had said, “Young advisors should be allowed to work with senior and experienced advisors and get trained. Since they do not have relevant experience, the existing advisors should help them to develop and learn client-facing activities.”
You can target young investors
Another benefit of hiring young advisors is that it can help you in targeting Gen Y clients. Young advisors can relate to the issues of young investors. Thus, it becomes easy for him to acquire those clients. Bangalore based advisor Deepesh Mehta feels that young advisors can communicate better to new clients. “Younger advisors are generally tech-savvy, understand how to communicate with younger investors, and enjoy interacting online.”
You can learn more
An advisor has to keep himself updated with all the information about the business. It is not possible for an advisor to know all the subjects really well. Moreover, new and modern concepts can be picked up by the young advisors faster. Vinod Jain of Jain Investments had earlier told Cafemutual that he gives extensive training to young advisors. “Our generation was different as compared to now. We need to constantly upgrade ourselves with new techniques and methodologies. Hiring young talent helps us to learn new trends and ideas which ultimately is favorable for our business. Not all the advisors are tech- savvy, but the youngsters can use this medium to increase their client base. Linkedin, Facebook and other social media platforms helps junior advisors increase this reach.”
Your successors will be ready
A recent study by Cerulli Associates points out that IFAs are mostly ill-prepared for their own succession. “As the advisor population ages, broker-dealers and custodians are at risk of losing AUM as advisors exit the industry. The independent channels are most at risk because they have the oldest advisors on average,” says the report.
Thus, hiring young advisors gives you the opportunity to groom talent and consider an internal transition once you’re feel you are ready to retire or limit your involvement with the firm.
